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Lease of land: drafting and conclusion of a lease contract, lease terms of the land plot

The urgency of renting land and using it for its own purposes will never decrease. Renting land is the easiest way to become the owner of a piece of land that can be used according to your ideas about economic efficiency. After all, on a leased lot even construction is allowed. But, as elsewhere, legal issues are not without nuances.

General idea of renting land

All the requirements for the registration of land in the territory of Russia are collected in the Land Code of the Russian Federation. But, unfortunately, it is often adjusted and changed, so when working with specific articles, you need to make sure they are up to date.

Nevertheless, the main provisions are unchanged:

• Land plots can be leased by individuals and legal entities, associations of citizens of the Russian Federation, foreigners who do not have citizenship, foreign representations and enterprises, international organizations.

• Restrictions are imposed on land plots located within the right-of-way, along the coastal line of reservoirs, nature-protected areas, as well as forest land.

• The right to lease can be subject to alienation (up to sale at land auctions), can be inherited or, if necessary, become a pledge. In all cases described, there are restrictions, stipulated by law.

• Lease of land is considered to be short-term and long-term: accordingly, up to five years and not more than 50.

Rental objects

The objects are all land plots (not included in the list of exceptions) that belong to citizens of the state, legal entities; Are communal or public real estate. Provision of land for rent, of course, carried out by the owners. If we are talking about communal property, the lessors are village (city, etc.) councils. When a site belongs to territorial communities, the signing of a land lease contract is carried out by representatives of regional (provincial) government bodies. If a state plot of land is taken on lease, then the contracts are signed by the executive authorities.

Since land plots can be the subject of a pledge, their transfer to a lease is in agreement with the pledgee.

Land lease agreement: what are the features

Any transaction with real estate must pass according to the current legislation. One of the conditions is the land lease agreement registered in the register. A sample of this document gives an idea of the general structure and conditions for its conclusion.

The mandatory paragraphs noted in this document should be:

• determination of the land plot by cadastral records (including locations and sizes);

• the period for which the contract is drawn up;

• Rent and its size - in this paragraph, the indexation amounts, the terms of payment and the form of the next payment, the responsibility for non-payment, etc., should be prescribed;

• Purpose of land and terms of use of the site;

• the condition of the property at the time of its transfer to the lessee and the condition for the preservation of the land;

• burdens (restrictions) on the use of land;

• determination of the party to which the risk is borne for unintentional damage or complete destruction of the object of the lease (its parts);

• shared responsibility of the parties.

What can you do with leased land

Lease of land plots (land law permits this) allows you to specify their part of the authorized capital of the enterprise within the terms of the contract. The land plot can also be leased out to third parties only by notifying the owner (in accordance with the agreed terms of the main contract). These nuances and conditions also need to be reflected in the lease of the site.

The written contract is made at least in two copies, and at the request of either party (the lessee or the lessor) can be notarized.

Rent of land plots will not be recognized eligible if the contract is drawn up incorrectly and there are no specified paragraphs in it.

Additional land lease documents

All of the above conditions apply to the contract itself. The conclusion of a lease contract for a land plot is accompanied by the following documents:

• plan (scheme) of the leased plot of land;

• a cadastral plan of the plot in which land easements and restrictions are displayed;

• an act on the determination between a site on the ground;

• Act on the acceptance and transfer of land for lease.

The parties can also specify the specific terms of the lease. They can become a mark on the quality of the land plot at the time of transfer to its tenant, the existence of an insurance policy of the facility, etc. The issues of reimbursement of expenses for improvement of the lease object and security measures are separately specified. In addition, if there is a need for land reclamation or some activities on the site, the contract remains in place, but all the nuances should be reflected in it.

Procedure for signing the contract

The specifics of the transaction, under which the land lease agreement is signed, is determined by the person having the ownership of the subject of the contract. In the case of private ownership, the agreement is signed by agreement of the parties. If the proposed object of lease is municipal or state property, the procedure for executing the transaction begins with the auction, and, according to the decision of the executive authority, a permit is issued for the transfer of the object to the lessee. A special case of renting a plot of land can be called the conclusion of a contract in the order of inheritance.

Rent of land plots, according to the laws, must be registered with the executive authorities.

Payment

The payment for the opportunity to use the land is regular payments that the lessee transfers to the lessor on time.

If the contract is concluded by private persons, payment is made by agreement of the parties. If the real estate object is a land plot from the state land fund, the payments are made in accordance with the norms of the Tax Code of the Russian Federation.

If the concluded contract turns out to be unauthorized by a court decision, then the rent that was received at the time of the court decision remains with the lessor and is not returned.

With the exception of land plots that are state and municipal property, rents can be made in the form of goods or in the form of providing services to the owner of the property. Rent of state property is paid only in cash.

Duration of the contract

At the beginning of the article it was already mentioned about the short-term and long-term lease of land. The time frames are negotiated individually, but they must not exceed 50 years.

Upon completion of construction and after the commissioning of the facility the tenant of the site can extend the contract for the next 50 years. He has a priority right.

In case of death of the tenant of the land allotment, the right to use the land is received by his heirs. They can, if they wish, give up their rights, and then the persons who reveal interest in the real estate object get the rights to rent it. This is the so-called assignment of land lease.

When the lease term for land plots ends, the contract is terminated or the procedure for its extension begins. Early termination of the contract is possible if:

  • The land is bought out for public needs.
  • The owner and the tenant will unite in one person.
  • The tenant (an individual) is sentenced to deprivation of liberty or has died, and family members and heirs refuse to fulfill contractual obligations.
  • The mortgagee of the land plot seized the right of ownership.
  • The structure was purchased by a person who is not the lessee of the land on which it was built.

Renewal of agreements

The tenant, who conscientiously fulfilled all obligations under the contract, has the primary right to extend it after the expiration of the agreement. But it is necessary to notify the owner of the land plot in writing about the desire to conclude the next contract.

The option of extending the lease period is possible without prior notice to the owner. This happens if the owner does not send a letter with objections about the use of land within a month after the termination of the land lease agreement. Then talk about the so-called automatic extension of the arrangement.

Termination of the contract. What's next?

The tenant is obliged to return the land plot to the owner within the agreed time and in the agreed condition. If the tenant has a claim to the owner (the lessor), they are resolved in court.

A person who became the owner of an apartment in a residential building (or a private house) receives the rights to a land plot (or part thereof) on which the construction object is erected. There is an assignment of the land. The contract, which determines the change of the owner of the housing, terminates the previous lease agreement for this land plot.

When the term of this contract expires, the new owners of housing or construction have a priority right to extend the lease of land. If there are insurmountable obstacles to the extension of the lease agreement, and the owners of one property will not agree with the owners of another object (the house and the plot under it), all issues will be decided solely through the courts.

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